The latest edition of the Commonwealth Bank Household Spending Intentions (HSI) series, data to end-October, supports the RBA’s view that the economy has reached a gentle turning point. But the improvement is quite modest given the tax rebates and interest rate cuts delivered in recent months. The sharp upswing in the Home Buying intentions series continues and is now approaching the record highs seen in H1 2017. After a poor September, there is a small pick-up in the Retail Sales intentions data in October. More broadly, there was some further improvement in Travel spending, Entertainment and Education last month. Health & Fitness spending has, however, turned down, while the recent slight improvement in Motor vehicle purchase intentions from deeply negative territory has now stalled.
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